Key Components Of President Obama’s Budget Proposal

On Feb. 13, 2012, President Barack Obama released his $3.8 trillion fiscal year 2013 (FY13) budget, which over the next decade offers $4 trillion in deficit cuts, including $517 billion in mandatory savings. The budget projects a FY13 deficit of $901 billion or 5.5 percent of the gross domestic product.

The President's budget seeks more money for education, infrastructure, and manufacturing, while increasing taxes on upper income Americans and many corporations. It would need to become law before any cuts or savings could be implemented.

The President's budget outlines his priorities, while serving as a blueprint for Congress to consider when writing the annual appropriations bills. The immediate reaction to the President's budget has demonstrated that spending and taxes are likely to be the sources of many political battles leading up to the November election. FY13 begins on October 1st of this year, so Congress must reach a spending agreement before then to avoid